Credit accumulation can quickly affect a household’s budget. In the event of unforeseen circumstances or changes in circumstances, it may become difficult to meet the debts incurred.
Although it is now relatively simple to take out a credit with a bank or other organization, monthly payments can quickly increase as loans accumulate. You have contracted too many credits? Several solutions are available to you.
Opting for the repurchase of credit
You have taken out several loans and can not manage to pay your monthly payments? Redeeming these credits can be a good solution. This operation consists in grouping all the loans subscribed into one in order to have only one and only credit to repay whose monthly payment is adapted to your ability to borrow. The repayment period of this loan is extended so that the debt ratio remains reasonable (less than 33%). However, setting up a credit buy-back involves a higher total cost. Thus, it is important to properly assess the value of this operation before committing. Feel free to make an online credit redemption simulation to determine the feasibility of this project.
Renegotiate loans with the bank
The renegotiation of credit makes it possible to obtain an extension of the duration of repayment of a loan by decreasing the amount of monthly payments. After considering your request, the bank will decide whether or not to change the terms of the loan. This operation, which must be distinguished from the repurchase of credit, can prove useful when one has too many credits.
In concrete terms, the borrower will first have to estimate the cost of credit and quantify the amount to be negotiated. Before any renegotiation, it is also advisable to perform an online simulation for a loan similar to the amount borrowed. If the proposals obtained through the simulator prove more interesting than those of the lending bank, the loan will have to be renegotiated in order to obtain similar conditions. Before renegotiating with the bank, however, it is necessary to work his argument to put all the chances on his side.
Enter the over-indebtedness commission
Over-indebtedness concerns borrowers who are no longer in a situation of bank eligibility, that is to say who can no longer subscribe to credit. In this case, it is possible to enter the over-indebtedness commission in order to give him your file containing the required documents. The filing of this file results in your registration in the National Register of Personal Credit Reimbursement Incidents (FICP) for a maximum of 5 years. The FICP can be consulted by credit institutions and finance and third-party finance companies in order to assess the solvency of a person applying for a credit. If your file is rejected by the commission, you will be deleted from this file.
Thus, several solutions make it possible to cope with an accumulation of credits. Credit redemption remains the preferred option as it is the most effective.